UK Ushers in a New Era of Data Protection with the Digital Information Bill 2.0

Data is a valuable yet challenging asset to control. In the wake of Brexit, the UK is re-engineering its legislation with the introduction of the Data Protection and Digital Information Bill 2.0. This new Bill promises to not only provide clarity on how scientists can process personal data to improve the lives of people across the country, but also reshape the current bureaucratic landscape, cutting down estimated costs for businesses and charities by an expected ￡4.7 billion over the next ten years.

The present-day data laws, largely inherited from the European Union’s General Data Protection Regulation (GDPR), are often heavily criticised for hampering scientific research and burdening small businesses with hefty compliance costs. The DMA (Data & Marketing Association) UK found that nearly half (48%) of SMEs express concern that GDPR introduced unnecessary bureaucracy, and over a third (37%) say it doesn’t work well for small businesses. In conversation with the IPM, Chris Combemale , Chair of the DPDI Business Advisory Group and CEO of the DMA UK emphasises that:

“Reforms within the DPDI Bill will create a better balance between innovation and privacy, maintaining GDPR’s high levels of data protection while enabling scientific and technological innovation that will power the future economy.”

Ministers have sought to streamline the Bill, reducing the paperwork for organisations to show compliance, meaning that only organisations whose processing activities are likely to pose high risks to individual’s rights and freedoms will need to keep processing records. This change reflects the necessity of data-driven trade, which remarkably contributes to 85 percent of the UK’s service exports and has infused approximately ￡259 billion into the national economy as of 2021. The Information Commissioner, John Edwards , champions the Bill, asserting that it will allow organisations to both innovate and maintain robust data protection standards – a key to bolstering economic growth while safeguarding data rights.

The Bill emerges at a pivotal moment, with artificial intelligence (AI) increasingly shaping key decisions in various sectors. It aims to address SMEs’ concerns by giving clarity to data processing, particularly surrounding legitimate interests. Hence why central to the Bill is the provision that businesses can confidently integrate AI while safeguarding individuals’ entitlement to human oversight:

“If a person is denied a job or a loan because an automated decision has been taken without meaningful human input, they can challenge that decision and request a human to review the outcome instead.”

Expanding the scope of 'scientific research', the Bill encourages collaboration across sectors and simplifies international data sharing. This move is strategic for the UK's role in the global digital economy, making international operations more seamless for UK-based companies. Key industry figures, including Rt Hon Michelle Donelan , Julian David OBE , and Chris Combemale , have welcomed the Bill, seeing it as a balance between innovation and privacy, tailored to the UK's unique needs post-Brexit.

The new Data Protection and Digital Information Bill 2.0 is set to have a notable impact on the field of promotional marketing. The legislation redefines the landscape for marketers who rely heavily on consumer data to tailor and target their campaigns. Under the new Bill, marketers will be expected to navigate revised guidelines for consent and data processing, ensuring that personal data is used in a manner that is both respectful of privacy and efficient for business needs. Interestingly, the DMA found that consumer attitudes are evolving, with 59% believing brands use data responsibly for marketing, yet 47% would ignore brands that don’t respect their preferences, highlighting the importance of maintaining consumer trust. The Bill also promises to simplify data management post-promotion, aiding marketers in campaign execution.

The Bill marks a pivotal step in the UK's journey to redefine its digital and data governance landscape. Addressing key areas such as compliance reduction for SMEs, AI regulation, scientific research expansion, and international data sharing. The Bill promises a more dynamic, innovative, and privacy-conscious digital economy. However, navigating these changes will require careful consideration, especially for businesses operating across borders. IPM members can delve deeper into the full-article by Manny Roberts, Regulatory Affairs Manager at the IPM, now available in the members' resource area. This deep dive provides valuable perspectives on the Bill's impact on diverse marketing practices, equipping businesses with the knowledge to adapt and thrive in this new regulatory landscape.

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